IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v218y2023ics0960148123011862.html
   My bibliography  Save this article

Distributed energy storage system planning in relation to renewable energy investment

Author

Listed:
  • Tsao, Yu-Chung
  • Vu, Thuy-Linh

Abstract

In a microgrid, an efficient energy storage system is necessary to maintain a balance between uncertain supply and demand. Distributed energy storage system (DESS) technology is a good choice for future microgrids. However, it is a challenge in determining the optimal capacity, location, and allocation of storage devices (SDs) for a DESS. This paper proposes a two-stage approach to solve these SD decision-making problems in a microgrid. In the first stage, a continuous approximation approach was used to formulate the SD location, capacity, and renewable energy investment problems from a long-term perspective. In the second stage, the dispatch quantity problems are addressed to minimize the operational cost based on the results of Stage 1. Some examples and real data are used to illustrate the model and solution approaches. The results show that our approach can achieve the cost minimization. The optimal SD location and capacity strategy and the renewable energy investment level are close to the real data obtained from Liu et al. (2018) after 20 runs.

Suggested Citation

  • Tsao, Yu-Chung & Vu, Thuy-Linh, 2023. "Distributed energy storage system planning in relation to renewable energy investment," Renewable Energy, Elsevier, vol. 218(C).
    • Handle: RePEc:eee:renene:v:218:y:2023:i:c:s0960148123011862
    DOI: 10.1016/j.renene.2023.119271
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148123011862
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2023.119271?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zakeri, Behnam & Gissey, Giorgio Castagneto & Dodds, Paul E. & Subkhankulova, Dina, 2021. "Centralized vs. distributed energy storage – Benefits for residential users," Energy, Elsevier, vol. 236(C).
    2. Carvallo, Juan Pablo & Zhang, Nan & Murphy, Sean P. & Leibowicz, Benjamin D. & Larsen, Peter H., 2020. "The economic value of a centralized approach to distributed resource investment and operation," Applied Energy, Elsevier, vol. 269(C).
    3. Ippolito, M.G. & Di Silvestre, M.L. & Riva Sanseverino, E. & Zizzo, G. & Graditi, G., 2014. "Multi-objective optimized management of electrical energy storage systems in an islanded network with renewable energy sources under different design scenarios," Energy, Elsevier, vol. 64(C), pages 648-662.
    4. Das, Choton K. & Bass, Octavian & Kothapalli, Ganesh & Mahmoud, Thair S. & Habibi, Daryoush, 2018. "Optimal placement of distributed energy storage systems in distribution networks using artificial bee colony algorithm," Applied Energy, Elsevier, vol. 232(C), pages 212-228.
    5. Saber, Hossein & Moeini-Aghtaie, Moein & Ehsan, Mehdi, 2018. "Developing a multi-objective framework for expansion planning studies of distributed energy storage systems (DESSs)," Energy, Elsevier, vol. 157(C), pages 1079-1089.
    6. Dasci, Abdullah & Verter, Vedat, 2001. "A continuous model for production-distribution system design," European Journal of Operational Research, Elsevier, vol. 129(2), pages 287-298, March.
    7. Liu, Zifa & Chen, Yixiao & Zhuo, Ranqun & Jia, Hongjie, 2018. "Energy storage capacity optimization for autonomy microgrid considering CHP and EV scheduling," Applied Energy, Elsevier, vol. 210(C), pages 1113-1125.
    8. Tsao, Yu-Chung & Mangotra, Divya & Lu, Jye-Chyi & Dong, Ming, 2012. "A continuous approximation approach for the integrated facility-inventory allocation problem," European Journal of Operational Research, Elsevier, vol. 222(2), pages 216-228.
    9. Ruiyang Jin & Jie Song & Jie Liu & Wei Li & Chao Lu, 2020. "Location and Capacity Optimization of Distributed Energy Storage System in Peak-Shaving," Energies, MDPI, vol. 13(3), pages 1-15, January.
    10. Moreno, Rodrigo & Moreira, Roberto & Strbac, Goran, 2015. "A MILP model for optimising multi-service portfolios of distributed energy storage," Applied Energy, Elsevier, vol. 137(C), pages 554-566.
    11. Gatzert, Nadine & Martin, Alexander & Schmidt, Martin & Seith, Benjamin & Vogl, Nikolai, 2021. "Portfolio optimization with irreversible long-term investments in renewable energy under policy risk: A mixed-integer multistage stochastic model and a moving-horizon approach," European Journal of Operational Research, Elsevier, vol. 290(2), pages 734-748.
    12. Boomsma, Trine Krogh & Meade, Nigel & Fleten, Stein-Erik, 2012. "Renewable energy investments under different support schemes: A real options approach," European Journal of Operational Research, Elsevier, vol. 220(1), pages 225-237.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yi Deng & Mehrdad Ehsani, 2024. "Inertial Energy Storage Integration with Wind Power Generation Using Transgenerator–Flywheel Technology," Energies, MDPI, vol. 17(13), pages 1-22, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ansari, Sina & Başdere, Mehmet & Li, Xiaopeng & Ouyang, Yanfeng & Smilowitz, Karen, 2018. "Advancements in continuous approximation models for logistics and transportation systems: 1996–2016," Transportation Research Part B: Methodological, Elsevier, vol. 107(C), pages 229-252.
    2. Yu-Chung Tsao & Aisyah Dewi Muthi’ah & Thuy-Linh Vu & Niniet Indah Arvitrida, 2021. "Supply chain network design under advance-cash-credit payment," Annals of Operations Research, Springer, vol. 305(1), pages 251-272, October.
    3. Jing, Rui & Kuriyan, Kamal & Kong, Qingyuan & Zhang, Zhihui & Shah, Nilay & Li, Ning & Zhao, Yingru, 2019. "Exploring the impact space of different technologies using a portfolio constraint based approach for multi-objective optimization of integrated urban energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.
    4. Haas, J. & Nowak, W. & Palma-Behnke, R., 2019. "Multi-objective planning of energy storage technologies for a fully renewable system: Implications for the main stakeholders in Chile," Energy Policy, Elsevier, vol. 126(C), pages 494-506.
    5. Nadarajah, Selvaprabu & Secomandi, Nicola, 2023. "A review of the operations literature on real options in energy," European Journal of Operational Research, Elsevier, vol. 309(2), pages 469-487.
    6. Bouchery, Yann & Woxenius, Johan & Fransoo, Jan C., 2020. "Identifying the market areas of port-centric logistics and hinterland intermodal transportation," European Journal of Operational Research, Elsevier, vol. 285(2), pages 599-611.
    7. Alessandro Burgio & Daniele Menniti & Nicola Sorrentino & Anna Pinnarelli & Zbigniew Leonowicz, 2020. "Influence and Impact of Data Averaging and Temporal Resolution on the Assessment of Energetic, Economic and Technical Issues of Hybrid Photovoltaic-Battery Systems," Energies, MDPI, vol. 13(2), pages 1-26, January.
    8. Yu-Chung Tsao & Qinhong Zhang & Tsung-Hui Chen, 2016. "Multi-item distribution network design problems under volume discount on transportation cost," International Journal of Production Research, Taylor & Francis Journals, vol. 54(2), pages 426-443, January.
    9. Chowdhury, Sudipta & Emelogu, Adindu & Marufuzzaman, Mohammad & Nurre, Sarah G. & Bian, Linkan, 2017. "Drones for disaster response and relief operations: A continuous approximation model," International Journal of Production Economics, Elsevier, vol. 188(C), pages 167-184.
    10. Das, Choton K. & Bass, Octavian & Mahmoud, Thair S. & Kothapalli, Ganesh & Mousavi, Navid & Habibi, Daryoush & Masoum, Mohammad A.S., 2019. "Optimal allocation of distributed energy storage systems to improve performance and power quality of distribution networks," Applied Energy, Elsevier, vol. 252(C), pages 1-1.
    11. Yu-Chung Tsao & Vu-Thuy Linh & Jye-Chyi Lu & Vincent Yu, 2018. "A supply chain network with product remanufacturing and carbon emission considerations: a two-phase design," Journal of Intelligent Manufacturing, Springer, vol. 29(3), pages 693-705, March.
    12. Gan, Wei & Ai, Xiaomeng & Fang, Jiakun & Yan, Mingyu & Yao, Wei & Zuo, Wenping & Wen, Jinyu, 2019. "Security constrained co-planning of transmission expansion and energy storage," Applied Energy, Elsevier, vol. 239(C), pages 383-394.
    13. Wang, Jiangjiang & Deng, Hongda & Qi, Xiaoling, 2022. "Cost-based site and capacity optimization of multi-energy storage system in the regional integrated energy networks," Energy, Elsevier, vol. 261(PA).
    14. Taofeek Afolabi & Hooman Farzaneh, 2023. "Optimal Design and Operation of an Off-Grid Hybrid Renewable Energy System in Nigeria’s Rural Residential Area, Using Fuzzy Logic and Optimization Techniques," Sustainability, MDPI, vol. 15(4), pages 1-33, February.
    15. Mousavi, Navid & Kothapalli, Ganesh & Habibi, Daryoush & Das, Choton K. & Baniasadi, Ali, 2020. "A novel photovoltaic-pumped hydro storage microgrid applicable to rural areas," Applied Energy, Elsevier, vol. 262(C).
    16. Tom Brijs & Daniel Huppmann & Sauleh Siddiqui & Ronnie Belmans, 2016. "Auction-Based Allocation of Shared Electricity Storage Resources through Physical Storage Rights," Discussion Papers of DIW Berlin 1566, DIW Berlin, German Institute for Economic Research.
    17. de Bragança, Gabriel Godofredo Fiuza & Daglish, Toby, 2017. "Investing in vertical integration: electricity retail market participation," Energy Economics, Elsevier, vol. 67(C), pages 355-365.
    18. Zizzo, G. & Beccali, M. & Bonomolo, M. & Di Pietra, B. & Ippolito, M.G. & La Cascia, D. & Leone, G. & Lo Brano, V. & Monteleone, F., 2017. "A feasibility study of some DSM enabling solutions in small islands: The case of Lampedusa," Energy, Elsevier, vol. 140(P1), pages 1030-1046.
    19. Yanfeng Liu & Yaxing Wang & Xi Luo, 2020. "Design and Operation Optimization of Distributed Solar Energy System Based on Dynamic Operation Strategy," Energies, MDPI, vol. 14(1), pages 1-26, December.
    20. Alain Bensoussan & Benoit Chevalier-Roignant & Alejandro Rivera, 2022. "A model for wind farm management with option interactions," Post-Print hal-04325553, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:renene:v:218:y:2023:i:c:s0960148123011862. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.